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how to invest in stock market in india

This Article is published as a part of Investment Options for Beginners In India, You may like to read part-1, Investment options for beginners and part2 Are Fixed Deposits the best investment option? before knowing about investing in Shares in indian stock market , we are not going to teach you when to sell or buy a share here, we are just introducing you to Indian share market


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Investing in shares is one of the common habits of wealthy people like Warren Buffet who made a fortune out of investing in stock market , I now want to discuss about equity investments belonging to the stock markets. The best way to beat out the inflation is through investing in equity shares. Currently Indian stock markets are growing at rapid pace. So it is a wise man's choice to invest in Indian Stock markets


We have two main stock exchanges in India namely National Stock Exchange & Bombay Stock exchange. In which Bombay Stock exchange was old but in business National stock exchange was in first position. When Companies require money for new investments or expansions they need money where they come to public issue called IPO(Initial Public Offer) also known as primary market. Where the companies issue shares to public in turn public give money to company. And these shares are listed on secondary market called stock market. Where the buyers & sellers meet & exchange shares for money.

Shares provide returns through two ways like dividend & capital appreciation. Stock markets work from 9.15am to 3.30pm from Monday to Friday on every week. SEBI regulates stock markets which promote & develope the interest of public towards stock market.

There are many sectors to invest directly in to oil, it, metal, pharma, fmcg, telecom, banking,capital goods etc... so on. And to advise all ages of people are not advised to invest in “stock markets” directly as it is sometimes reffered to “shock markets”. The individuals who are young and salaried or newly married or people who are in mid thirties can invest directly. People who are not willing to take risk directly can invest through mutual funds where number of equity funds are available in market.



image credit: stuart miles/freedigitalphotos.net

One who wants to trade in stock market should have Demat account in which you can hold shares. Many people have doubts regarding which share to invest, for this the broking companies will hire research analyst to advise on which stock to invest. But the tips are not guaranteed. So one can also take decision on their own based on companies results, earnings per share, companys beta value, current or future projects, sector performance etc.... this is not easy as it takes more time for you to understand all this terms. But still if you start trading you will be knowing & already many of your friends, colleagues or relatives already started trading or may have some earlier experience, you can seek advise from them too. Need to follow tv channels like cnbc tv18, ndtv profit, zee business etc..., website like economictimesindia, yahoo finance etc... & daily newspaper like businessline, financial express etc.

Currently Nse index  S&P CNX Nifty is at 5900 levels where the bottom is around 2400 in 2009 & highest is around 6500 in 2007/2008. Warren Buffet a successful investor in America says “ To buy shares when all are selling & sell when all are buying”, wait for long term & stick to top fundamental companies. It is always see that your proportion of investment in equity market should come down as your age increases respectively. Finally there is no easy way to earn money in equity markets in very short period of time. Market may rise for coming months & after come down in second half of 2013 as we will head elections in 2014. So be careful & happy investing in stocks.

Author info:
This Article is written by D. Gopi Kishore who is into Finance and stockbroking.


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how to invest in stock market in india Reviewed by Gowardhan Doddi on 12/18/2012 07:02:00 PM Rating: 5

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